Asked by Julia Lavier on Jul 23, 2024
Verified
According to behavioral economists, the human brain
A) makes most decisions based on careful calculation of benefits and costs.
B) uses evolutionary-developed heuristics to make many decisions.
C) only develops heuristics for decision making after the same decision has been made multiple times using a rational framework of comparing benefits and costs.
D) employs heuristics in decision making that are slow but generally error free.
Evolutionary-developed
Pertains to characteristics, systems, or processes that have evolved over time through natural selection and adaptation.
Heuristics
Mental shortcuts or rules of thumb that ease the cognitive load of making a decision.
Decision Making
The process of identifying and choosing alternatives based on the values and preferences of the decision-maker.
- Recognize the value of heuristics in guiding decision-making procedures and their consequences on economic practices.
Verified Answer
DR
Dishalene RamasamyJul 26, 2024
Final Answer :
B
Explanation :
Behavioral economists argue that the human brain often relies on heuristics—mental shortcuts developed through evolution—to make decisions, rather than solely on detailed calculations of benefits and costs. These heuristics allow for quicker decision-making but can sometimes lead to biases or errors.
Learning Objectives
- Recognize the value of heuristics in guiding decision-making procedures and their consequences on economic practices.
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